The group has set itself a target of 200 outlets nationwide. It currently operates over 130 branches and plans to open a total of 31 new outlets in the current financial year to March 2000 and a similar number in 2000-01.

Most of the outlets will be 'Yates Wine Lodges', but the group is also experimenting with other projects including 'Ha! Ha! Bars & Canteens', 'Watling Street Inns' and 'Blob Shop', a student-led drinking outlet.

The expansion programme is expected to see the total number of employees rise to around 5,000 by the end of next year.

"We still see plenty of scope to extend our brands. We believe the market could easily sustain 200 outlets across the UK," group chairman Peter Dickson said.

Free Millennium soft drinks

The group also said it planned to hand out free soft drinks on Millennium eve.

"The Millennium is difficult to call, but we're offering free admission on the night plus free soft drinks. We're not really factoring in a 'super-profit' windfall, although we expect to generate extra revenue on the run-up to the big night," Mr Dickson said.

The company said it came to the decision after conducting a survey which showed 67% of people planned to travel to their chosen venue by car.

Managing director George Marcall said he expected the free-drinks venture would cost �10,000, but he said the figure was insignificant in comparison with the group's expected takings for the night. The group as a whole took more than �1m last New Year.

Yates' outlets will stay open all day on Millennium Eve through to the next morning. Staff will be paid double-time plus a �100 bonus for the shift.

Sales up

Yates announced the freebie as it reported a rise in sales for the six months to 26 September 26 to �67m from �56.4m.

Pre-tax profits were �6.4m, up from �6.2m.